American chain-store giant teams up with Chinese supermarkets

Qingkelong Supermarket Group in the city of Daqing in China's northernmost Heilongjiang Province formally joined IGA Monday, revealing a business expansion strategy of the world's largest voluntary supermarket network.

Apart from Qingkelong, another three Chinese retail stores, theSanjiang Company in eastern Zhejiang Province, the Bubugao Companyin central-south Hunan Province and the

Zhongbai Company in central Hubei Province signed separate agreements with IGA, in plans to join the US-based grocery giant soon.

Chairperson Guo Geping of the China Chain Stores and Franchise Association said that the cooperation agreements were written within six months, an indication of the huge development potentialof voluntary supermarkets in China.

IGA Chairman and Chief Executive Officer Thomas Haggai said voluntary supermarkets allow independent small and medium-sized companies to form alliances on a voluntary basis. In Europe and American markets where Wal-mart and Carrefour have strong presence,voluntary supermarkets have achieved marked progress, he said.

Established in 1926, IGA includes more than 4,000 independent supermarkets in 45 countries and has sales volume of more than 23 billion US dollars annually worldwide.

The Qingkelong Group with 11 distribution outlets is a flagshipenterprise in Heilongjiang Province.

Source: Xinhua